Finmin puts GST on top in the priority to-do list

Outlining the roadmap of the BJP-led government for the coming months, finance minister Arun Jaitley has said that the Goods and Services Tax (GST) will be a ‘top priority’ and he hopes to take the bankruptcy code to the Parliament in the winter session.

“Our roadmap for the coming months (is that) GST will be a top priority. My bankruptcy code is almost ready, hopefully I'll take it to the Parliament in the winter session," he said addressing students and faculty at the Columbia University.

Earlier, parties in opposition led by Congress did not allow passage of the GST Bill during the monsoon session. A consensus is yet to be reached on the bill, which requires to be passed with two-thirds majority. Sources say that the Congress was opposed to the proposal for levying one percent additional tax on the supply of goods in the course of inter-state trade.

The key changes approved by the cabinet in the GST law is full five-year compensation to the states for possible loss of revenues. The select committee has suggested compensation against the entire revenue loss for full five years as against compensation in phased manner provided in the Bill. Sources say that the details of the 1 percent tax to be levied over and above the GST rates to compensate the manufacturing states for a possible loss of revenue will be finalised at the time of framing the rules.

GST proposes to replace most central and state levies with one single tax, which is projected to add as much as two percent to the country's GDP. The Rajya Sabha Select panel was set up by the government during the budget session to get approval for the GST Bill in Parliament. The GST Bill was passed in the Lok Sabha, but faced opposition in the Upper House.